What is KYC?

KYC: Know your customer. The identity check exchanges and banks must do before you can trade.

Banks, brokers and crypto providers have to know who their customers are. That is called KYC. When opening an account you show your passport or ID card, for example.

The check is meant to fight money laundering and fraud. Sometimes a provider also asks where your money comes from, especially with larger amounts.

Providers that do no identity check at all often do not follow the rules. That can be a warning sign.

Example
You want to buy 1,000 euros of crypto from a provider in the EU. Before you can trade, you take a photo of your ID card and a selfie. If you later deposit a much larger amount, the provider may ask for a payslip or bank statement, for example.

Watch out
Scammers sometimes pose as a provider and ask for your ID by email or chat. Documents are safest shared only through the official app or website of a provider you looked up yourself.

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